Have you heard of the $50 raffle to win the $1.3M house?

My question.... do you have to pay taxes on $1.3 million (450K?) if you win?

http://www.fiftydollarhouse.com/

 

Gambling/lottery winnings . . . minus any YTD losses you've recorded . . .

 

Who could afford to "win" this house, then?

 

This is close to where my brother works so him and his wife bought a ticket. There's another house in the area, not as expensive, doing something similar.

 

Couldn't you just flip it for about $700K-800K or so?

 

Your question touches on why winning rooms full of "retail price" furniture and the like on shows like The Price Is Right is a decidedly-mixed blessing.

 

I think you have to keep it for two years before you can flip it, not entirely sure, though.

 

Well, in that case, I'm with Simon. Who can afford to "win" this house?

 

someone who planned to live in it, for one. Or maybe rent it out.

I wonder if you sold it for even $400,000 if that could be established as the value of the home.

 

Even if that were possible, your neighbors would kill you.

 

I don't live anywhere close. What do I care?

 

But you still have to pay the taxes on it. Do you have $450K laying around if you're the lucky winner?